The Finance Minister Nirmala Sitharaman is once again set to present her second Budget for the year 2020. Expectations from the budget are always high particularly the working class which seeks higher tax rebate and price cuts by way of lowering of taxes in order to make a more comfortable living.
On the other hand, it a challenge for the finance minister to rise to the expectations of every section of society be it working class, the business class, the industries, agriculture, farmers, imports and exports, curbing black money, generating employment and much more. It is also a reality that the finance minister cannot please everyone because sometimes it becomes imperative to take harsh decisions while taking care of the country’s economic health.
Like everyone else, I too have several hopes and aspirations from the Budget which I have penned down here. I have my own priorities and look at things from the angle of a common man who thinks of a better society, financially stronger nation and a developed India.
I wish to see Nirmala’s Budget addressing several issues which, according to me, are important to curb free flow of black money, open employment opportunities, rescue farmers from taking loans and boosting industrialisation in the country. Now it is for the experts to decide what can be done and how.
INCOME TAX
Talk of the Budget and the first thing that strikes your mind is Income Tax. Every common person is worried about income tax and next morning this goes on to make the biggest news headline too. It is a natural feeling that we all want to live a quality life and for that we strive to earn well and increase our incomes. Since the income is taxed by the government we, naturally, wish to hide the income so that we have maximum money in our hands. This is the primary reason that every citizen of the country is primarily looking at tax reliefs in the Budget every year.
There are two entirely different classes in the society– one who work as employees and the other who are in business/ self-employed, whether small or big. Those in jobs get their salaries where taxes are already deducted accordingly (TDS) and the employee has no means to hide income. On the other hand, the business class or the self-employed need to declare their earnings/ income themselves and file taxes accordingly.
The figures that they furnish or their chartered accountant furnishes are believed to be true and the tax slab is fixed accordingly.
I am referring to roadside vendor selling samosas, chaat, paan shops, vegetable vendors, local small shopkeepers like grocery stores, cloth merchant, local sweet shop and eateries etc., private contractors, carpenters, blacksmiths and so many others. All these people rarely file taxes and escape saying they are ‘poor’. Even the IT department never thinks to bring them in the tax net. On the contrary the reality is something else as most of these people have multiple houses, vehicles to ride, their homes are equipped with all basic necessities of good life according to their status and income. This section of the society earns in cash, spends in cash and keeps minimal amount in banks. They take full advantage of the loophole in the taxation system. These are the people who have created a vicious cycle of earning and spending in cash because such a lifestyle suits them while keeping the tax department at bay.
When two different categories of people earn differently, declare their incomes differently, spend differently then why should there be similar parameters for income declaration and tax filing for them? I expect that the Nirmala’s Budget will take note of this loophole and bring many more under tax net.
In fact, there should be two kinds of tax structure– one for those in jobs or employees and another for self employed/ business class. If you are in job you file Form 16 but those doing their own private work should be brought under tax net in a different structure.
TAX REBATE
Those in jobs and earning salaries are most worried about rebates in tax. And why should they not worry as the salaries come after deducting TDS.
If the person is self employed he should be filing taxes in an entirely different structure where there is minimal scope to hide the income. The parameters may be property in his/ spouse name, vehicle in his name, etc.
BLACK MONEY
Corruption and black money are major issues for the government. There is huge amount of black money in circulation in the society and it goes widely unchecked because people take advantage of the loopholes in the law. These people live in the society with great pride, confidence and fearlessness. Most of the black money comes or gets circulated in the society by the business/ self-employed people. Those in service also get black money way of under-the-table earnings and live a lavish life. This ‘rich’ class of the society is the most dangerous section which spoils the neighborhood and family relations. I wish the Budget comes up with a method to check them.
Forfeit money/ property: If a corrupt person is nabbed or booked all his property and other assets should forfeited which are disproportionate to his income/ status. These corrupt people live fearlessly and are not worried about their lives. They know that even if they are nabbed they will get suspended, at the most. That doesn’t bother them as they have their ‘black earnings’ intact with them and can live a comfortable life thereafter.
The Budget should make provisions that the assets and properties of such corrupt people will now onwards be forfeited. This will also help in greater earning to government exchequer.
Monitor Cash Expenditure: There are millions of people all over the country who prefer earning in cash and spending in cash. This is a vicious lifestyle that suits them and helps them stay ‘rich’ yet hide their ‘actual income’ and ‘declared income’ and there is nobody to question you. I expect the Budget 2020 should bring out a method to check cash expenditures.
In our existing system one can conveniently and fearlessly spend ‘black money’ earned in cash and yet no fingers raised. For example, buy any amount of petrol in cash, travel in buses, trains, flights and pay in cash, go for local shopping to any length and pay in cash, go to hotels and restaurants and pay in cash. All this with no questions asked, no doubts raised and no fear of breaching law. Should the Budget not check it all !
EMPLOYMENT
Creating more jobs has been the biggest challenge for any ruling government. Failure to provide jobs gives the opposition a great opportunity to criticise the government and make it a poll plank. However, jobs are not easy to create or that they cannot be manufactured in a factory and distributed to the people. The ruling government need to work on it strategically and win people.
In Second Part , we will look at two sectors which gives employment – Industry , Agriculture .
